Multiple Choice
A firm has a cash conversion cycle of 60 days. Annual outlays are $12 million and the cost of negotiated financing is 12 percent. If the firm reduces its average age of inventory by 10 days, the annual savings is __________.
A) $144,000
B) $104,000
C) $40,000
D) $28,800
Correct Answer:
Verified
Correct Answer:
Verified
Related Questions
Q119: A lockbox system is used to reduce
Q220: A firm which uses the aggressive financing
Q221: Delaying the payment of accounts payable in
Q222: An increase in the current asset to
Q224: A firm has arranged for a lockbox
Q226: Dizzy Animators, Inc. currently makes all sales
Q227: A firm can reduce its cash conversion
Q229: The cash management techniques are aimed at
Q230: A decrease in the current liabilities to
Q235: Mail float is the delay between the